Amazon launches new Business Prime benefits, spend visibility tool
Amazon will let its Business Prime customers analyze purchasing trends, earn credit card rewards and request extended payment terms, as the online retail giant aims to capture a larger slice of supplier spend incurred by businesses of all sizes.
In the U.S., members can choose 5 percent discount or 90-day terms on eligible purchases with the new Amazon Business American Express Card, enjoy free same-day delivery or free one-day shipping for qualifying orders of $35 or more, Amazon said in a statement.
“We continue to listen to feedback from our business customers and are excited to introduce these new benefits. Our goal is to help businesses drive even more transparency into their procurement process, while ultimately lowering their total cost of purchasing,” Prentis Wilson, Vice President of Amazon Business.
Amazon said in September that its Business division clocked more than $10 billion in annualized sales. In the U.S. alone, the company said it serves nearly 80 percent of the 100 largest enrollment education organizations, 55 of the Fortune 100 companies, more than half of the 100 biggest hospital systems and more than 40 percent of the 100 most populous local governments.
Amazon Business also offers access to nearly 150,000 U.S. business sellers – hundreds of thousands globally - and hundreds of millions of products.
Amazon’s Business Prime program may primarily entice small and medium businesses and could begin to have some impact on spend incurred via e-catalogs, spot buys and P-cards in large organizations.
The below graph depicts the Best-in-Class practice followed by world-class procurement organization towards their organization's total spend.
Besides offering benefits such as extended payment terms, Amazon has also launched a Spend Analytics tool that may largely help Small and Medium businesses.
“Our customers also told us that we needed to provide them with procurement analytics based on order history and spending patterns. This is why we built Spend Visibility,” Sundar Raghavan, Director, Product & Tech, Amazon Business said in a blog post published on the company’s website.
Spend Visibility tool includes the summary of key performance indicators, and individual dashboards for spend broken down by category, department, region, month, supplier etc, according to Raghavan.
Screenshot of Spend Visibility tool Source: Amazon
Amazon’s entry into the corporate procurement space does not threaten traditional e-procurement and P2P service providers for now. Also, the company’s new spend analytics offering may largely entice small and medium businesses (SMB). However, one needs to watch out for this space for any future developments.
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